New technologies are disruptive and one of the industries that has been revolutionized by technology is the financial niche. Traditional financial institutions are even feeling the heat to adapt or risk being phased out by the new vibrant fintech businesses. With global funding sky-rocketing, you would understand why the field is gaining traction. Well, if you have a game-changing fintech idea, then this is perhaps the best time to join the growing industry! Let us give you a quick guide covering tips to get you started from scratch
Identify your market niche
There are a myriad of fintech-related sectors that you can choose from. For instance, you could look into Neobanks, blockchain technology, cryptocurrency, Insuretech, or stock trading app, etc. All these areas present a myriad of opportunities to venture into. The problem with most entrepreneurs is a lack of a clear road map on what they want to focus on. Identifying a market niche is essential for you to stay and succeed in the business. Remember, you are investing a lot of time and money. You might not want to waste all that hopping from one idea to another. Find your passion, strategize, draw short term and long term goals, and then watch your vision grow.
Don’t forget the legal side of business
New ventures are always exciting and also very exhaustive. You find yourself eager to start the business that you forget to the legal side. Additionally, you might be overwhelmed with the processes and forget to conduct due diligence. You must know that fintech is arguably one of the most regulated industries. Dealing with customer data, payment, investments, and money in general, contributes to the myriad of rules and regulations put in place. To be on the safe side, take time to understand applicable laws that affect your business. As you grow your business and hope to expand, you might want to research and learn the laws and regulations of the other state or country.
Tip: It is good to talk to a lawyer right from the start to ensure you understand the laws that affect your business.
Look for available funding options.
Did you know that global fintech funding has risen to over $100 billion? Well, these numbers are expected to grow significantly because of the opportunities presented in the sector. This means there are available funding opportunities for your startup. Before you start making those applications, ask yourself some questions like why are you borrowing the money? What impact will it add to your fintech startup? What are the risks involved? You do not want to end up bankrupt or lose your company because of money borrowed? Additionally, do not focus solemnly on banks and incubators. Your potential investors include distribution partners, technical and product advisors, product development partners, and even your customers.
Build a strong team
It is almost impossible to succeed in the fintech business if you are not working with top professionals. Unlike other businesses where barriers to entry are relatively low, fintech demands professionals with a good grasp of what it takes to build and develop solutions. In this field, you are looking for top financial, technological, and business experts. Therefore, your most significant task as an entrepreneur is to know how to attract, engage, and retain the best talent in the market.
Remember building a strong team implies the ability to attract the best talent in the various areas of competence. This means technology should be your best friend. Investing in tools and software that will maximize your employee input and experience is vital. For example you should use a revolutionary HRIS Platform that will transform the way you handle your talent. The idea, in this case, is to recruit the best talent and give them experience that will keep them growing with your venture.
Stay on top! Keep innovating!
The nature of fintech business requires you to stay on top of the latest technological innovations and the market demands. You need to continually research better ideas to build your products and services or develop new ones to serve the needs of your customers. It is so easy to be for once people find a new technology that offers better solutions. You simply cannot resist change in this type of business. So, keep innovating!
In a nutshell, starting a fintech business demands quite a lot more grit, but it can be done! If you are bold, innovative, and in love with delivering tech solutions, then it is time to get to business. We hope the tips we have covered will help you build a successful fintech business from scratch.